Business Segment Information

6 Months Ended

Mar. 31, 2012

Business Segment Information [Abstract]

Business Segment Information

7.     BUSINESS SEGMENT INFORMATION

The Company is organized based on the products and services that it offers. Under this organizational structure, the Company has three reporting segments: Utility Solutions Group (USG), RF Shielding and Test (Test) and Filtration/Fluid Flow (Filtration). The USG segment's operations consist of: Aclara Technologies LLC (Aclara), which was formed from the December 31, 2011 merger of Aclara Power-Line Systems Inc., Aclara RF Systems Inc., and Aclara Software Inc.; and Doble Engineering Company (Doble). Aclara is a proven supplier of special purpose fixed-network communications systems for electric, gas and water utilities, including hardware and software to support advanced metering applications. Doble provides high-end, intelligent diagnostic test solutions for the electric power delivery industry and is a leading supplier of partial discharge testing instruments used to assess the integrity of high voltage power delivery equipment. Test segment operations represent the EMC Group, consisting primarily of ETS-Lindgren L.P. (ETS) and Lindgren R.F. Enclosures, Inc. (Lindgren). The EMC Group is an industry leader in providing its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy. The Filtration segment's operations consist of: PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair) and Thermoform Engineered Quality LLC (TEQ). The companies within this segment primarily design and manufacture specialty filtration products, including hydraulic filter elements used in commercial aerospace applications, unique filter mechanisms used in micro-propulsion devices for satellites and custom designed filters for manned and unmanned aircraft.

        Management evaluates and measures the performance of its operating segments based on "Net Sales" and "EBIT",

        which are detailed in the table below. EBIT is defined as earnings from continuing operations before interest and taxes.

        The table below is presented on the basis of continuing operations and excludes discontinued operations.

(In thousands)	Three Months ended March 31,		Six Months ended March 31,
NET SALES	2012	2011	2012	2011
USG	$  74,475	84,992	$  144,824	177,182
Test	50,483	42,103	89,837	74,106
Filtration	48,905	39,653	92,127	75,396
Consolidated totals	$173,863	166,748	$  326,788	326,684

EBIT
USG	$   9,101	15,814	$   14,067	31,169
Test	4,775	5,214	6,722	7,123
Filtration	9,468	6,534	17,704	12,009
Corporate (loss)	(6,270)	(5,977)	(12,586)	(12,143)
Consolidated EBIT	17,074	21,585	25,907	38,158
Less: Interest expense	(470)	(538)	(961)	(1,312)
Earnings before income taxes	$ 16,604	21,047	$   24,946	36,846

Non-GAAP Financial Measures

The financial measure "EBIT" is presented in the above table and elsewhere in this Report. EBIT on a consolidated basis is a non-GAAP financial measure. Management believes that EBIT is useful in assessing the operational profitability of the Company's business segments because it excludes interest and taxes, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by management in determining resource allocations within the Company as well as incentive compensation.

The Company believes that the presentation of EBIT provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. However, the Company's non-GAAP financial measures may not be comparable to other companies' non-GAAP financial performance measures. Furthermore, the use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.